Seth Godin and marginal cost on the Web. Good thoughts, including the mythical marginal cost of 'free' on the web.
" ... Until you understand the true marginal cost of your products or services, you can't make smart decisions about pricing or customer acquisition. ... Industries with zero marginal-cost products and services are inherently unstable until someone figures out how to become the king of the hill, the leader, the one worth picking because everyone else is. When that happens, the truth above about efficient markets goes away... because a market with one dominant leader isn't efficient any more.... "
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